MarkitSERV has launched a new, cloud-based technology for post trade processing of OTC derivatives trades. Called TradeServ, the new platform launched in September for matching, confirming and clearing trades of non-deliverable forwards (NDFs).
Some 32 banks and major asset managers are live with TradeServ. More than 1 million cleared NDF trades have been processed using MarkitSERV this year (January through October), 80 per cent more volume than in 2017 and nine times higher than 2016 for the same period.
TradeServ is a modern platform as a service (PaaS). It uses micro-services architecture and cloud infrastructure to make the platform highly flexible, scalable and reliable. It provides customers with better access to trade data, easier integration and more continuous service upgrades in response to changing regulation and industry needs.
IHS Markit will migrate FX options, spots and forwards to TradeServ in the first half of 2019.
“The broad connectivity and standardised workflow from MarkitSERV are integral to efficient derivatives operations and compliance,” says Bill Stenning, managing director for clearing, regulatory and strategic affairs at Société Générale corporate and investment banking. “With the introduction of TradeServ, the clearing of NDFs to multiple CCPs has moved to a modern PaaS which is an important step forward for the industry.”
“MarkitSERV has always been the innovator that brings progress to the OTC derivatives markets,” says Brad Levy (pictured), CEO of MarkitSERV. “Our success shows how markets embrace new technology when it is deployed through a trusted network. Beginning in FX, TradeServ will enable us to be even more responsive to customer needs and make it easier for users to interact with their data and customize workflows.”
TradeServ will expand to credit derivatives in mid-2019. It will use blockchain-compatible technology to supply initial trade and trade lifecycle data to the re-platformed Trade Information Warehouse (TIW) from The Depository Trust & Clearing Corporation (DTCC), which will be delivered on distributed ledger. When credit moves to TradeServ, it will mark the retirement of the DSMatch platform currently used to process FX and credit.
TradeServ also provides a framework to accelerate enhancements to MarkitWire, the MarkitSERV platform for interest rate swaps and equity derivatives.
“The architecture and technology we are deploying in TradeServ make our platforms much more agile and responsive to clients’ requirements,” says Claire Lobo, senior vice president and product head for MarkitSERV. “We’ve built our new platform as a series of interoperable apps, so that when regulation changes or a new standard like SOFR is deployed in the market, we update specific apps which is much easier and faster than updating traditional software.”
